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Sun and Moon Corporations each have only one class of stock outstanding.Their stock ownership is shown below.
Which of the four stock ownership changes that are illustrated is the minimum change that is needed if Sun and Moon Corporations are to be brother-sister corporations under the 50%-80% requirements? (Assume the two corporations are equally valued. )
Substitution Effect
The shift in consumer behavior toward different products as a result of changes in their relative costs, prompting the replacement of one item with another.
Output Effect
The impact on the economy when production increases, leading to a higher real GDP and potentially affecting employment and price levels.
Total Revenue Product
Total Revenue Product is the total revenue generated by a firm from selling its output, which is a key concept in understanding a firm's profitability.
Perfect Competitor
A perfect competitor operates in a market where no single buyer or seller has the power to influence prices, and where information, resources, and products are freely and openly available to all.
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